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SLEPT ANALYSIS OF
MARUTI
AKSHIT MAMANIA
DIV: D
A SLEPT analysis is an analysis of the external macro-environment that
affects all firms. S.L.E.P.T. is an acronym for the Social, Legal Economic,
Political, and Technological factors of the external macro-environment. Let us
look at the SLEPT analysis of the Maruti Suzuki.
Social Factors
Rapid urbanization of semi urban region. As life gets more complex with
more urbanization need for car have increased. It is no more considered a
luxury in some cases. Thus there is no doubt that the car market is booming
and maruti need to focus on the needs and demand of the sector.
In a country like India, there are people from varied income groups. The
companies have to recognize these individuals and should serve them
accordingly.
History of Emission Norms in India: It was only in 1991 that the first stage
emission norms came into force for petrol vehicles and in 1992 for diesel
vehicles.. In the year 2000 passenger cars and commercial vehicles will be
meeting Euro I equivalent India 2000 norms. Euro II equivalent Bharat Stage
II norms were in force from 2001 in 4 metros of Delhi, Mumbai, Chennai and
Kolkata. Later in 2005, the third stage of emission norms came into force.
These norms are still implemented today in all the cities of the country. Soon
Bharat Stage IV is to be implemented in the country for all vehicles across
India.
Meeting Indian vehicle safety and other performance standards also requires
substantial attention to various elements of the car, such as brakes, lights,
interior fittings, active and passive safety, emission control, and structural
reliability. Ensuring that these standards are met may often require
modification of the vehicle itself or of the components. While many of these
design and engineering changes may be minor, in the aggregate they have
significant influence on numerous technological aspects of the vehicle
Economic Factors
There is potential for much higher growth in the domestic market due to fact
that the current penetration level in india is just 7 cars per thousand persons.
Rising per capita income: The per capita income is on increase and this
will lead to more demand for passenger cars in future. For this cars for
various segment needs to be launched.
Political Factors
Economic liberalization , started in 1991, led to delicensing of the
passenger car segment in 1993. Before liberalization maruti Suzuki was
highly protected by the government of india, but after competitors started
coming in, it did loose considerable amount of share in the market. Thus
auto policy was a major factor for maruti in the time of liberalisation
Technological Factors
Need for innovation: The competitiveness in the sector will largely depend
on capacity ot the industries to innovate and upgrade. The last decade has
seen a major transformation of the Indian car industry, from a protected
business with only one world-class manufacturer to a landscape that includes
most of the world’s major players as well as some emerging domestic firms
vying for a significant piece of an expanding market. In the process, the
industry has also leaped forward technologically, driven by a confluence of
factors such as intense competition, demanding consumer preferences,
government policies (especially tightening emission standards), and the
global strategies of the various players. Now, cars manufactured in India are
based on designs, and incorporate technologies, that are often comparable
with those available globally. The capability to manage technological change
will be important to meet the challenges of an increasingly globalized
automobile market, as well as local and global environmental challenges.